Lululemon announced its fiscal quarter earnings this Monday. The Retailer calls out that Lululemon shares will receive low-end estimates. It announces the shortage in staff as one of the main reasons for the fall. The reduced store hours due to the rise in Covid cases impacted the revenue accusation.
The retailer recorded the stock closing price of Lululemon shares at 1.9% at $348.43.
In the recent press release, Lululemon states that the fourth quarter will stand in the range of $2.125 billion to $2.165 billion. The earning per share (EPS) will also range between $3.25 to $3.320.
Refinitiv the analyst estimates and announced the Lululemon share for earnings of $3.34 per share on the sale of $2.17 billion.
The CEO, Calvin McDonald, shares his view, as he states, “We started the holiday season in a strong position but have since experienced several consequences of the omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations.”
Like Lululemon, many other retailers are also facing the problem. The staff often falls sick due to the pandemic. The exposure of labor in the highly contagious omicron variant is bringing the sale down.
Macy’s, Apple, Walmart are also facing the same problem. Macy’s has reduced store hours across the country for the rest of the month. Big merchant retailers like Walmart closed down their stores at 60 locations in December 2021. The rise of the new variant has reduced the availability of employees. This has cut in hours for the store opening.
Similarly, Nike, Athleta, and Starbucks have cut down the opening hours. The reduced staff is the common reason.
Lululemon share prospects are bullish of nature on its business. The holiday performance of the retailers was not as hoped. The investors are disappointed in the performance.